It is well known that the Internet has significantly reduced consumers’ search costs online. But relatively little is known about how search costs affect consumer demand structure in online markets.
The increasing use of online platforms for search has both dramatically reduced search costs and improved researchers’ ability to directly observe and study search behavior, which complements stated search studies. … examines individual-level internet browsing data from ComScore to measure how search durations for consumers shopping for
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The internet dramatically reduced search friction – physical visits to stores were no longer necessary and extensive product information was readily available online. It stood to reason that price dispersion should vanish in an internet world, a view capably summarised by The Economist (20 November 1999, p. 112), which argued:
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Abstract. This paper examines the evolution of product search. We provide an overview of product search in. the pre-internet era, and discuss how online search evolved from directory based search in the early. 1990s to “vertical” search engines by the late 1990s. We also document the prominence of price.
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How Has The Internet Dramatically Reduced Search Costs
Abstract. This paper examines the evolution of product search. We provide an overview of product search in. the pre-internet era, and discuss how online search evolved from directory based search in the early. 1990s to “vertical” search engines by the late 1990s. We also document the prominence of price. It is well known that the Internet has significantly reduced consumers’ search costs online. But relatively little is known about how search costs affect consumer demand structure in online markets. In this paper, we identify the impact of search costs on firm competition and market structure by exploring a unique theoretical insight that
The growing use of the Internet has made search costs lower for consumers. We study the effect of this on the incentives for firms to invest in quality. We assume that there are firms producing high-quality products and others producing low-quality products; we also assume that the market share of the latter is higher than that of the former.
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The growing use of the Internet has made search costs lower for consumers. We study the effect of this on the incentives for firms to invest in quality. We assume that there are firms producing high-quality products and others producing low-quality products; we also assume that the market share of the latter is higher than that of the former.
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It is well known that the Internet has significantly reduced consumers’ search costs online. But relatively little is known about how search costs affect consumer demand structure in online markets.
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The internet dramatically reduced search friction – physical visits to stores were no longer necessary and extensive product information was readily available online. It stood to reason that price dispersion should vanish in an internet world, a view capably summarised by The Economist (20 November 1999, p. 112), which argued:
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creasing in the fraction of consumers with positive search costs and in the level of the search costs. One could regard obfuscation as an action that raises search costs and/or the fraction of consumers who incur search costs. Such actions would increase average markups and the fraction of consumers buying from relatively high-priced firms.
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Abstract. This paper examines the evolution of product search. We provide an overview of product search in. the pre-internet era, and discuss how online search evolved from directory based search in the early. 1990s to “vertical” search engines by the late 1990s. We also document the prominence of price.
Source Image:
Download Image
It is well known that the Internet has significantly reduced consumers’ search costs online. But relatively little is known about how search costs affect consumer demand structure in online markets. In this paper, we identify the impact of search costs on firm competition and market structure by exploring a unique theoretical insight that
Source Image:
Download Image
The increasing use of online platforms for search has both dramatically reduced search costs and improved researchers’ ability to directly observe and study search behavior, which complements stated search studies. … examines individual-level internet browsing data from ComScore to measure how search durations for consumers shopping for
creasing in the fraction of consumers with positive search costs and in the level of the search costs. One could regard obfuscation as an action that raises search costs and/or the fraction of consumers who incur search costs. Such actions would increase average markups and the fraction of consumers buying from relatively high-priced firms.
